Recently, there has been quite a few perpetual bond issuance, like Singpost, Olam, Mapletree Logistics Trust etc. However, what must have caught MAS eye really is the Genting perpetual bond raising which included a second round to market to retail investors. Now that MAS has made it official that they are concerned, I guess it is probably a good thing.

According to the article, MAS officials are worried that retail investors are taking on too much risk without fully understanding the difference between a perpetual bond and a standard bond with a set maturity date. Likewise, I agree with them as many of my readers were asking me questions regarding the Genting perpetual bond and it was quite obvious that many were not knowledgeable about the product and yet went ahead to invest in them.

The article rightly points out that perpetual bonds come with high duration risk as there ...